Avalanche (AVAX)-based lending protocol Benqi (QI) has seen a surge in high-risk loans, with the amount surpassing $55 million, marking the highest level in two years, according to data from crypto market data analysis platform IntoTheBlock. High-risk loans are those where liquidation is initiated if the value of the collateral asset falls by 5%. This recent increase in high-risk loans on Benqi implies potential cascading liquidations and increased market volatility. A large liquidation can create a negative feedback loop of more liquidations occurring as the value of collateral is impacted. This situation highlights the need for caution and risk management in decentralized finance (DeFi) protocols like Benqi. ```